What every SA home buyer and seller needs to know ...
WHETHER you’re buying or selling, SA’s leading real estate experts give their top tips to help investors, first-home buyers, renovators, prestige buyers, sellers and regional buyers.
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AFTER a slow, wet winter, real estate agents are gearing up for the traditional spring rush.
Whether you’re buying or selling, SA’s leading real estate experts give their top tips to help investors, first-home buyers, renovators, prestige buyers, sellers and regional buyers.
Our team of experts include:
Greg Moulton - Harcourts chief executive officer
Richard Thwaites - LJ Hooker Kensington principal/auctioneer
Anthony Toop - Toop&Toop Real Estate managing director
Matt Smith - Klemich Real Estate director
Alex Ouwens - Ouwens Casserly Real Estate director
David Smallacombe - Smallacombe Real Estate managing director
Phil Harris - Harris Real Estate managing director
Patrick Booth - Bernard H Booth Real Estate sales consultant/auctioneer
Question 1:
If you could have bought 20 years ago, which three suburbs would you have bought in?
Greg Moulton
Burnside: 20 years ago land was cheap because landholders were splitting large blocks so to have picked up a property for a good price would have been a good investment.
Waterfront from West Beach to Semaphore: These areas are still undervalued, even less back then. These suburbs are always great buying because you can’t build on the other side of the road.
Stirling: While somewhat isolated back then, the freeway was always an inevitability and a massive boon that has made the city more accessible than ever.
Richard Thwaites
Magill: It offers good access to schools, the university, transport and has a sense of community.
Vale Park/Klemzig: It is well serviced by O-Bahn transport, boasts the River Torrens Linear Park for lifestyle and is inexpensive.
Stepney: It was seen as industrial and poor. Now it’s buzzy and cosmopolitan and offers a Norwood lifestyle without the price tag.
Anthony Toop
If the money was available I would have bought in Unley Park, Hyde Park, Milswood, St. Peters through to North Adelaide. These suburbs have become incredibly popular with the changing demands of walking to cafes and shops. The prestige market love to have easy access to trendy places to hang out.
With a limited budget I would be buying in Glengowrie, Glenelg and surrounding towns.
Alternatively, Stirling and Crafers. Prices near hills had to move drastically with the completion of the tunnel - which they did, making them the most beautiful place in the world to live and close to the city at affordable prices.
Matt Smith
Norwood, Unley and Henley Beach: Real estate in South Australia is in highest demand on the city fringe and coastal regions. Norwood, Unley and Henley Beach are three high performing suburbs which have experienced strong capital growth over the past 20 years.
Alex Ouwens
Beachfront at Henley Beach: Great growth and finite land will mean long term scarcity and demand. Fast paced lifestyles mean buyers are seeking seachanges. The market has been through a dip since 2008 but is seeing signs of life again.
CBD East of Hutt Street: Hutt has cleaned up from its dirty days and we now see demand 20% higher down the east end than the rest of the city. It’s still great buying and undervalued.
Unley Park: Home to nice large allotments and character homes. Scarcity principle applies here too.
David Smallacombe
Torrens Park: It is undergoing generational change. It is a beautiful foothills suburb where the 50s homes are being renovated or replaced with two-storey executive residences. Prices will continue to rise.
Mitcham: It is one of Adelaide’s oldest suburbs which manages to retain that village feel. It is adjacent to beautiful Brownhill Creek Reserve and near excellent schools.
Port Willunga: It is a tightly held beachside hamlet, particularly the old survey area. It is even more accessible now with the new freeway.
Phil Harris
Unley Park: It’s arguably Adelaide’s most prestigious suburb and continues to grow in price every year.
North Adelaide: With its prestige reputation, North Adelaide still remains one of Adelaide’s most iconic areas.
Medindie: Home to some of the most beautiful streets in Adelaide with some truly exceptional properties, it is just about guaranteed capital growth for eternity.
Patrick Booth
Norwood: It’s a very well located suburb in relation to proximity to the city and great local amenity provided by the strip shopping, cafes and services on the Norwood Parade, while still maintaining that village feel. It has seen good growth over the last 20 years and continues to be one of the more tightly held and highly sought after suburbs from buyers.
Parkside: It is very well located in relation to the city, with good and easy public transport. It’s well located in relation to the fringe retail and service hubs of Unley and King William Road. It has seen good growth over the last 20 years and remains highly sought after.
Henley Beach: This suburb has undergone a revitalisation in more recent years with upgrades to nearby shopping hubs, eateries and pubs. It is such a conveniently located beachside lifestyle only 15 minutes to the city and has seen good steady demand over the years and is very tightly held.
Question 2:
If you were a first homebuyer and had a $400,000 budget, which three suburbs would you buy in?
Greg Moulton
Thebarton: It’s undervalued, yet still affordable and close to the city.
Magill: It has always been a prestigious Eastern city fringe location but with a more affordable price tag.
Adelaide city unit: These offer the ultimate in lifestyle and offer great value.
Richard Thwaites
Campbelltown, Klemzig and Windsor Gardens: They are all close to the city and all border the River Torrens Linear Park. Housing is relatively cheap considering proximity to the city and O’Bahn transport. Old timber framed housing stock is being demolished.
Anthony Toop
Bowden through to Croyden and Woodville: At some stage the light rail and the Port Adelaide precinct will undergo refurbishment and the Bowden development along with the Adelaide Oval and new hospital and infrastructure the north west corner of the city makes this location of the north western corridor an obvious place for future growth.
Fleurieu: It’s hopelessly undervalued, it can’t help but have substantial capital gain and with the demographic of the baby boomers - to me this is a very obvious spot to invest.
Near city acreage: It’s currently hopelessly undervalued and, with the move towards organic produce and fresh air and water, there has to be a bright future for small acreage within easy commute of city. Includes areas such as Mylor, Macclesfield, Piccadilly and One Tree Hill.
Matt Smith
I would consider purchasing a cream brick unit in a small group in the eastern suburbs. These units, built in the 1960/70s, were often built on generous land holdings which offer space. The demand from first home buyers and investors keeps the value in the properties. A budget of mid to upper $300’s will be required.
Inner North/Western suburbs like Woodville continue to offer good value buying. They are in proximity to the City and beach with easy access to shopping, schooling and transport.
A suburb along the Northern or new dual southern expressway, for example Seaford and Moana now have permanent access to the city and offer an enjoyable neighbourhood.
Alex Ouwens
Fulham Gardens: It has large allotments with older houses if you can stretch a little above $400,000 but also great maisonettes so close to the beach.
Brompton: It’s an up and coming near city location.
Marryatville: Get into the market and buy a unit in the ever popular Marryatville School Zone.
David Smallacombe
Aldinga Beach: It offers a great coastal family lifestyle and a lot of house for your money.
Plympton: It’s close to the city and the beach and has excellent transport options.
Edwardstown: Gentrification will drive up property prices.
Phil Harris
Pasadena: It’s a great location in a developing area with affordable pricing not far from the city or the beach.
Rostrevor: A gem in north-eastern suburbs with plenty of medium density development close to great shopping and schools.
St Marys: Thsi suburb is set for capital growth with good size allotments less than 7kms from the CBD.
Patrick Booth
North Adelaide: An apartment/ unit in North Adelaide with the idea of holding the property as an investment for future years. It’s in good proximity to the newly completed Adelaide Oval and the city. Rental demand is underpinned by proximity to the city, and it is in a sought after location and well located to Universities and hospitals.
Adelaide City: The city of Adelaide is continually rejuvenating and continues to offer a great lifestyle. There is always a good depth in the market in the city of Adelaide and stock is always reasonably sought after from both owner occupiers and investors with a strong rental market. Ideal for future investment if it were to be held but usually very saleable and probably even more so as the city continues to grow and develop in the coming years.
Bowden: It’s well located to city and North Adelaide with good public transport and newly developed with excellent aesthetic appeal, a good youthful vibe and affordable new product.
Question 3:
If you had $1 million to spend, which three suburbs would you buy in?
Greg Moulton
Stirling: It offers the ultimate hills lifestyle near the city and the large blocks are very appealing.
City warehouse to renovate: These offer a brilliant modern, open-plan lifestyle in a great location.
A renovators delight in Burnside or Erindale: I love the Eastern suburbs and these suburbs are home to some absolutely stunning older residences.
Richard Thwaites
St Peters: You can still buy a good property in St Peters for $1 million, character if you want. It’s very close to the city, has wider tree-lined streets plus very good schooling.
Erindale: It boasts excellent public schooling, larger allotments and a wide choice of housing styles.
Leabrook: It’s a timeless 5-star suburb. Others have caught up with it a bit lately but it will eclipse the surrounding suburbs in the next 10 years.
Anthony Toop:
Norwood: Even in a rising solid market it’s strong, and in a boom market the demand is unbelievable.
Parkside and Unley: It’s within walking distance the city and there is currently a lot of capital injection with extensions and renovations making it a cool pace to live.
Henley Beach: It’s so close to the city but has the glamour and feel associated with beach suburbs and beautiful beaches.
Matt Smith:
I would buy in Stirling to experience the splendour of the Adelaide Hills.
I’d buy in Rose Park for quick access to Victoria Park for recreation.
I’d also buy in Brighton for the beautiful beach.
Alex Ouwens
Unley: It’s so close to everything - King William Road shops, CBD and great character homes.
Prospect: Buy yourself a beautiful family home close to the city and Prospect Road amenities but at 25-50% of the price to neighbouring suburbs.
Henley Beach: The whole area is undergoing a renaissance - Henley Square, the shopping centre and it’s the closest beach to Adelaide… and beautiful!
David Smallacombe
Torrens Park: It offers the perfectly balanced foothills lifestyle, trees, views, large allotments and excellent schools.
Kingswood: It boasts classic character and a consistency of architecture in tree-lined avenues.
Colonel Light Gardens: Home to big extended family bungalows on big allotments and still great value.
Phil Harris
Parkside: It’s city fringe with beautiful character homes and one of Adelaide’s most popular suburbs.
Goodwood: It offers the Hyde Park lifestyle with not quite the price tag.
Glen Osmond: It’s exceptional eastern suburbs buying and has large allotments with elevated views.
Patrick Booth
Norwood: It continues to have strong following from buyers, has a superb proximity to the city and a village feel.
Adelaide City: There’s always good demand for quality city stock and good depth in the market as well as a good investment with a strong city rental market. The city of Adelaide continues to be rejuvenated and with developments such as the new hospital and the Adelaide Oval and we see demand continuing to grow for city living.
Henley Beach/ Henley Beach South/ Glenelg/ Brighton: It has a beachside location the first two to three streets back from the Esplanade as people look for the sea change and lifestyle that these seaside suburbs offer. Very few places in Australia you can live this close to some of the most magnificent beaches and be a 15-20 minute drive to the city.
Question 4:
If you had $500,000 to spend on an investment property or investment properties, which three suburbs would you buy in?
Greg Moulton
City: City properties are undervalued and I believe that with the lifestyle the city offers we’re going to see an influx of people into it.
Mile End: The western suburbs are undervalued for what you get in there and it offers good access to both the city and beach.
Payneham: There are some really nice old villas on big blocks, which families in particular are really attracted to.
Richard Thwaites
Kilburn: This once not-so-popular suburb is going through a rebirth with the sale of excess public housing stock and some very good infill development. It offers ex-housing trust pairs on large allotments for under $500k. Most need a little work but rent well if close to transport.
Norwood: Always a perennial winner and you can get two-bedroom townhouses $400k to $500k. Vacancy rates are very low and this suburb leads the market well. If you need to sell in the future there’s always a premium buyer.
Felixtow: Houses in this $500k area are still available in this near city suburb on good sized allotments close to Linear Park and the O Bahn. This one is for a long-term hold.
Anthony Toop
Hindmarsh Island: It’s on the water and under 500k and that’s just going to become impossible to do in the future.
Mile End through to Enfield: Affordability and proximity to the city and the suburbs within this circle are in huge demand and eventually prices will take off.
Inner Hills, Aldgate: So pretty and a beautiful place to live and purchase in this price range.
Matt Smith
If I had $500,000 to spend on an investment property I would purchase in Norwood, Parkside and Unley. All three suburbs have high demand for rental accommodation due to their proximity to the City, cafe strips and transport.
Alex Ouwens
Kensington Gardens: Brand new houses have better depreciation benefits however the old cream bricker on a corner is always popular.
West Beach: It’s an underrated beachside location. See if you can find a bargain near the beach.
Adelaide: See if you can find a property east of Hutt Street, the odd cottage comes along… get a building inspection!
David Smallacombe
Parkside: It’s sought after and next to the city.
Belair: It has to go up in price because it offers so much for the money - beautiful trees and a balance of life.
Daw Park: It is adjacent to Colonel Light Gardens and the emerging Goodwood Road Precinct
Phil Harris
Adelaide CBD: The demand for rental accommodation in the CBD is still exceptionally strong and always will be.
Norwood: The lifestyle of The Parade ensures constant demand for tenants as well as good capital growth.
Eastwood: It’s a popular city fringe location and can be a bit of a sleeper suburb as far as value for money considering the location.
Patrick Booth
North Adelaide: It’s well located, will benefit from recent developments and has a strong rental market underpinned by its proximity to Universities, hospitals and the city.
Norwood: There is strong demand for rental properties from a broad spectrum of the market place and continued good demand/supply dynamics for potential capital growth.
Adelaide city: It has a very strong rental market with potential upside as the city continues to develop.
Question 5:
What three regional SA towns or cities do you tip as being the next big thing?
Greg Moulton
Barossa: The Barossa Valley has an enormous upside but we’re not pumping the tourism enough.
South Coast: It offers some of the best beaches in SA, and I think properties, even those right on the coast from Victor Harbor to Goolwa represent excellent buying.
Port Lincoln: I think properties are undervalued there. They’ve had some tough times and are coming out the other side of it and there are some good buys through there.
Richard Thwaites
Gawler: It has a solid, established town structure. The electrification of the rail will be completed soon, the new Northern Expressway connector is a big plus and it has a good mix of old and newer housing stock. Excellent educational facilities, both public and private make this probably the next big thing in regional SA.
Mt Barker: It has good freeway access and a very good community spirit in a semi-country environment.
Ardrossan: The new mine will be a huge plus if it goes ahead. It has an established town structure on the water.
Anthony Toop
Hahndorf: This town is driven by beauty, tourism, easy access and is a very cool town.
Victor Harbor: It’s currently not trendy, ridiculously cheap and a regional hub that’s beautiful and with complete services, like hospitals and infrastructure.
Barossa, Tanunda especially: It is easily accessible with northern expressway and a joy to live there as it’s beautiful and when the wine industry comes out of the doldrums, which it will, the place will be even more exciting.
Matt Smith
In the short to medium term inner-regional areas like Balhannah, Oakbank and Woodside will continue to grow in popularity. These inner-regional areas are an easy commute to Adelaide yet far enough way to escape city life. In the long term, if the urban sprawl in Victoria is a guide whereby Melbourne nearly joins Ballarat with housing, then townships along the Great Eastern Freeway like Strathalbyn and Callington could well be the next, (next) big thing.
Alex Ouwens
Island Beach, KI: Kangaroo Island has suffered since the GFC. Watch this space when the airport gets extended and the ferry gets sorted out by the SA EDB.
Black Point: It’s one of SA’s only north-facing beaches. Only a couple of hours’ drive and you’re in family holiday heaven.
Victor Harbor: Baby Boomers love it. It’s less than an hour’s drive to Adelaide and with the two-way expressway, the market is recovering already.
David Smallacombe
Aldinga: It offers an accessible beachside lifestyle.
Port Lincoln: It’s a wealthy town where the successful residents reinvest in their own city and it offers great fishing and boating.
McLaren Vale: It’s a brilliant, emerging wine region attracting overseas investment.
Phil Harris
Port Lincoln: The population continues to grow which is causing a continuing demand for housing.
Victor Harbor: The amount of people retiring to Victor is staggering and, considering the prices haven’t really moved a lot since 2008, one would think it is set for growth.
Ardrossan: The Rex minerals copper mines project has currently been given an offer of a mining lease from the Government which, if does go ahead, is forecast to generate 600-700 jobs within the area.
Patrick Booth
Port Lincoln: It’s well positioned for any potential gas exploration/development and has good industries in fisheries and agriculture underpinning the town.
Whyalla: It’s well-supported by industry which, although has its peaks and troughs, should continue to support employment. It will benefit from any growth in demand from not only mining but agriculture also.
Port Pirie/ Port Augusta: It’s supported by industry and so there is potential upside in future demand for commodities and industrial materials and it is surrounded by a strengthening agricultural industry.
Question 6:
If you had $10,000 to spend on renovations to prepare a home for sale, what area of the home would you spend it on?
Greg Moulton
It would be a toss up between the kitchen and main bathroom. These are the high impact rooms and some of the more expensive for buyers to renovate.
Richard Thwaites
Paint, gardens and floor coverings. They give the best effect for the least expense. Leave the big ticket items for the next guy.
Anthony Toop
Gardens, painting, floor coverings and all highly visible maintenance areas of home. People will generally only pay for what they see and if a property looks neglected or worn out, it will attract a different category of buyer and that category won’t pay a premium. The best price will be achieved for something that can be moved into and lived comfortably immediately, it also won’t attract a ‘ handy man’ style of buyer.
Matt Smith
I would spend the money on the front of the property. First impressions are everything. Despite google maps, RP data, up-market and every other property information guide available to buyers there is still nothing more informative and powerful in the buying process than an old fashion ‘drive-by’.
Alex Ouwens
Paint, carpets, gardens, lawn, light fittings and styling. Shoot for an overall “feel” rather than one piece of wow factor.
David Smallacombe
The kitchen and bathroom, and colour scheme: Women have 71% of the influence in residential purchase. Women scrutinise kitchens and bathrooms. Women think in colour.
Phil Harris
The kitchen: People feel they can always put up with an original bathroom however the kitchen living area is where we all live. Renovated kitchens just about always bring a return.
Patrick Booth
If the kitchen and bathrooms are functional then expenditure would be best spent on revitalising and updating the residence. This would include new carpets, paint externally and internally and new blinds or providing an undercover carport/garage if not already existing. Potential buyers will feel that they can move straight in and start living and so they can spend their last dollar on the initial purchase.
Question 7:
What would you avoid spending money on?
Greg Moulton
Anything to do with foundations, fences, roofs, electrical and plumbing I would avoid as you won’t necessarily get a return on them. As long as all the behind the scenes things are in good condition, I wouldn’t spend any money on them.
Richard Thwaites
If possible, kitchens and bathrooms. It’s easy to spend up big on and get carried away. If everything else is absolutely spot-on then you may consider a kitchen make over.
Anthony Toop
Wet areas are very expensive and need to be renovated well before sale. Things that currently won’t add value are the unseen features and although it may change, currently solar systems. For the purpose of express sale and the preparation of a home for sale, big ticket expensive unseen items such as solar or insulation won’t provide a return on investment.
Matt Smith
I would avoid spending money in areas that are most likely to undergo a major refurbishment by a new owner, like upgrading a lean-to which may make way for a large open plan extension.
Alex Ouwens
Any major renos purely to increase sale price. Save some for the overall feel: Buyers just work out the cost and won’t pay any extra if the overall package hasn’t been presented perfectly.
David Smallacombe
The back shed. It is the last thing people see. First impressions count.
Phil Harris
If it’s a renovation to sell be careful on spending excessive amounts on luxury appliances as some people wont justify paying more because of a luxury brand.
Patrick Booth
If kitchens and bathrooms are dated yet functional and not offensive it is best to let the new purchaser undertake any renovations. Often the new purchaser will not pay the full capital cost of any new kitchens and bathrooms in a purchase price. They often also like the idea of undertaking these jobs themselves and designing something to their specific taste.
Originally published as What every SA home buyer and seller needs to know ...
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